Best Car Insurance Companies – Who Reins Supreme?

Whether you’re considering a change in your insurance provider or it’s your first venture into selecting an auto insurance policy, our recommendations for the best car insurance companies provide comprehensive analysis.

Auto insurance plans are uniquely tailored, meaning the ideal car insurance company for you may differ from another individual’s choice. Our team at Carsflow has conducted an in-depth assessment of the leading nine auto insurers nationwide. In the following section, we will explore the distinguishing features that set them apart, encompassing their reputation, ratings, advantages, disadvantages, and typical cost figures.

9 Best Car Insurance Companies

Discover the best car insurance companies that offer top-notch coverage, excellent customer service, and competitive rates. Find the perfect protection for your vehicle today.

1. Best Large Insurance Firm: American Family

American Family secures the top position among the best car insurance companies. They provide various incentives for policyholders in select regions, such as rewards for customer loyalty, successful completion of defensive driving courses, and coverage for students studying away from home. Additionally, American Family offers mobile applications for tracking driving habits, enabling safe drivers to enjoy discounted rates.

Advantages:

• Remarkably few customer grievances in comparison to rival auto insurance providers.
• Offers highly competitive car insurance premiums for individuals with DUI records.
• Diverse array of coverage alternatives, encompassing gap coverage and deductible reduction.
• The KnowYourDrive program, a usage-based insurance approach, can yield savings for prudent drivers.

Disadvantages:

• Drivers with excellent records might discover more affordable auto insurance premiums with alternative providers.
• Unimpressive pricing for young, seniors or adolescent drivers included on a parent’s policy.
• The availability of American Family car insurance is restricted to just 19 states.

Average annual premiums for a 35-year-old with a strong credit profile:

2. Best for Most Drivers: Travelers

The Travelers stands out for its diverse discounts and coverage options. Notable offerings include named non-owner coverage, guaranteed asset protection (GAP), and accident forgiveness. Holding a 2.11% market share with $5.9 billion in premiums written in 2022, it boasts a respectable industry presence.

Although just 1.5% of the August 2022 customer survey (by MarketWatch) participants held Travelers policies, their satisfaction was notably high, garnering above-average ratings. On the flip side, Travelers scored lower than average in the J.D. Power 2023 Insurance Shopping Study℠, with 848 out of 1,000 points, 13 points below the segment average.

Mixed results were seen in the J.D. Power 2023 Auto Insurance Study℠, with strong scores in the Mid-Atlantic and New York regions but below-average scores elsewhere. Notably, Travelers didn’t respond to inquiries about its lower scores.

The BBB rates Travelers with an A, but customer reviews average 1.0 out of 5.0, albeit from a small portion of Travelers’ insured drivers.

Advantages:

• High industry ratings
• Policy offers forgiveness for accidents
• Possible bundling with homeowners insurance and additional options

Disadvantages:

• Moderate customer satisfaction rating on the BBB
• Availability limited, not accessible in all states

Travelers Car Insurance Cost

According to a cost analysis, it appears that Travelers offers a full-coverage insurance policy that is approximately 21% more affordable than the average national rate. These calculations take into consideration individuals who are 35 years old, possess unblemished driving histories, and maintain favorable credit scores.

3. Best for Devoted Customers: Nationwide

If you’re seeking an insurance provider that values long-term client relationships, Nationwide could be a suitable choice. The insurer provides various cost-saving opportunities and an array of auto insurance plans, all while offering numerous perks to devoted policyholders.

Their loyalty rewards initiative even encompasses a feature known as minor accident forgiveness, assuring that your premiums won’t increase in case of a minor collision and a filed claim stays within Nationwide’s accident threshold. The best part? There’s no set cap on the number of such incidents.

Advantages:

• Minimal customer grievances compared to other best car insurance companies.
• Competitive rates for comprehensive and collision coverage.
• Affordable car insurance options for drivers with subpar credit and adolescents on a parental policy.
• Availability of usage-based and pay-per-mile insurance.

Disadvantages:

• Elevated insurance costs for DUI offenders and at-fault accidents resulting in injuries.
• Unavailability of rideshare insurance.

Average annual rates by Nationwide for a 35-year-old motorist with a favorable credit history:

4. Best for Crash Forgiveness: Progressive

Progressive earns our top spot for car insurance customization with its Name Your Price tool. This tool empowers drivers to tailor their coverage to their budget, setting Progressive apart from the competition. Customers establish a budget, and Progressive crafts a policy to match. From there, policyholders can fine-tune coverage limits and deductibles.

For example, you can increase your collision coverage deductible to reduce premiums, though be aware this means a higher payout in case of an accident. Progressive offers valuable add-ons like GAP coverage, covering up to 25% of the vehicle’s value versus what you owe, and custom equipment coverage for mobility aids or GPS systems.

Unique perks include rideshare coverage that caters to drivers working for services like Uber or Lyft. Progressive even covers pet injuries in collision policies.

Progressive’s Snapshot program rewards safe driving with discounts, and they provide a deductible savings bank that accumulates $50 every claim-free six months, eventually covering your deductible when you need to make a claim.

Advantages:

• Cut costs by enrolling in the drive-tracking initiative
• Seek affordable premiums using their Price Customization tool
• Utilize Progressive’s quote comparison tool
• Access the Loyalty Rewards scheme

Drawbacks:

• Price fluctuations between online and phone purchases
• Inconsistent discount offerings

Progressive’s typical yearly rates for a 35-year-old driver with a strong credit history:

5. Best for Military Personnel: USAA

Serving military members, their spouses, and children, USAA is the fifth-largest U.S. auto insurer, holding a 5.9% market share in 2022 with $16.4 billion in premiums. Highly rated by J.D. Power, it scored 874/1,000 on the Insurance Shopping Study and outperformed competitors in most regions on the Auto Insurance Study.

Despite a 1.1-star BBB rating, the small number of reviews doesn’t reflect its broad customer base. USAA offers standard and additional coverage options, including liability, collision, comprehensive, MedPay, PIP, and uninsured motorist coverage.

Advantages:

• Ranks highest in customer approval among the best car insurance companies we evaluated
• Provides reduced rates for family members with prior USAA connections
• Serves customers across all 50 states, even in the nation’s capital

Drawbacks:

• Inaccessible to non-military individuals
• Provides a narrower range of specialized insurance options when compared to alternative auto insurance providers

Average USAA Car Insurance Cost

6. Best for Monetary Strength: Auto-Owners

J.D. Power assessments reveal that Auto-Owners garners remarkable customer approval in its operational regions, with commendably minimal customer grievances, according to data from the National Association of Insurance Commissioners.

Furthermore, Auto-Owners presents an appealing option with their new car replacement coverage, ensuring your vehicle retains its value post-purchase. Notably, the company excels in affordability and provides an extensive range of major discounts, aligning with standard industry offerings.

On the downside, it’s worth noting that Auto-Owners functions as a super-regional insurer, limiting its availability to a modest 26 states.

Advantages:

• Offers the second most affordable auto insurance rates for individuals responsible for accidents.
• Policy choices encompass accident pardoning, reducing deductibles, gap coverage, and new vehicle substitution.
• A full payment of your car insurance premium could yield an average savings of 14%.
• Boasts an above-average claims handling reputation, according to CRASH Network.

Disadvantages:

• Less competitive pricing for individuals with subpar credit when compared to other providers in our assessment.
• Above-average pricing for those with poor credit.
• The inclusion of a teenage driver on a parent’s policy incurs standard auto insurance rates.
• Unavailability of SR-22 coverage.

Auto-Owners’ annual rate averages for a 35-year-old motorist with a favorable credit history:

7. Best for Discounts: Amica

Amica Mutual is one of the best car insurance companies due to its Platinum Choice Auto policy, featuring Advantage Points rewards and deductible savings. This comprehensive package covers essential needs and offers unique perks like identity fraud monitoring, deductible-free glass coverage, etc. Amica classifies coverage into must-haves and nice-to-haves, including MedPay for medical expenses, collision coverage, comprehensive collision for non-collision damage, guaranteed asset protection (GAP), and credit monitoring service. Mainly, Amica boasts a decade of top rankings in New England’s J.D. Power Auto Insurance Customer Satisfaction study, a low NAIC complaint ratio, and a B+ in the 2022 CRASH report card for fair policy handling and payments.

Advantages:

• Complimentary airbag replacement post-deployment
• Key replacement in case of theft
• $1,000 for bail bonds and wage compensation when summoned to court
• Inclusive of a non-binary gender choice

Disadvantages:

• Excludes rideshare insurance
• Limited availability across the nation
• Unavailable coverage in Hawaii

Amica’s annual premiums for a 35-year-old motorist with a satisfactory credit history:

8. Best for Students: State Farm

State Farm stands out as the top choice for young drivers due to its generous discounts. Teenage student motorists with a GPA of 3.0 or higher can save up to 25%. This Good Student Discount continues until the age of 25, helping offset the high premiums typically associated with teen drivers. Those under 21 can also benefit from discounts by completing a driver’s ed course.

Moreover, State Farm offers a “Student Away at School” discount, which covers students only during vacations and holidays, leading to further savings. With a vast network of nearly 19,000 agents across all states, State Farm provides personalized service, making it an attractive option for those seeking dedicated assistance.

The company’s policies include coverage for rental cars and travel expenses for accidents over 50 miles from home. They also offer roadside assistance, and their travel expenses coverage extends to accidents covered by comprehensive and collision insurance, providing up to $500 for expenses like hotels, food, and rental cars. State Farm’s Drive Safe and Save telematics program observes driving styles and offers discounts of up to 30% for safe driving.

Advantages:

• Accessible in the majority of states
• Potential savings through Drive Safe & Save and Steer Clear initiatives
• Coverage for travel expenses

Disadvantages:

• The Drive Safe & Save program excludes CA, MA, or RI residents

Average yearly rates from State Farm for a 35-year-old driver with a favorable credit history:

9. Best for Budget-Conscious Drivers: Geico

Geico provides cost-effective auto insurance options with the most competitive rates for minimal and extensive coverage. It also boasts a noteworthy customer satisfaction score from J.D. Power, an AM Best rating of A++, and a BBB rating of A+. Geico additionally offers other insurance products, such as home and renters insurance, for convenient bundle savings.

Advantages:

• Attractive insurance premiums for the majority of drivers
• Exceptional mobile application with top-notch policy coverage

Disadvantages:

• Tends to offer elevated rates to individuals with less favorable credit or recent accidents in their history

Geico’s annual premiums for a driver with a favorable credit history:

How to find the best car insurance?

Selecting the best car insurance company requires thorough consideration, as individual needs and circumstances vary. To kickstart your search, follow these tips:

1. Shop Around: Price plays a vital role, but it’s highly personalized, depending on factors such as age, location, vehicle, and driving history. Since companies weigh these differently, compare quotes to find the most affordable option.
2. Check for Complaints: Assess the customer experience, as interactions with the insurer often revolve around filing claims.
3. Review Your Coverage: Ensure your policy aligns with your needs, avoiding unnecessary expenses.
4. Consider Smaller Insurers: Smaller companies often provide competitive rates compared to larger rivals in various areas.
5. Shop Strategically: If you have a traffic violation, like a ticket or DUI, shop 3 to 5 years after the incident when surcharges significantly decrease. Tailor your insurance choice to your unique situation.

Types of Car Insurance

Most states mandate liability car insurance, which covers costs for other drivers in accidents you cause, including medical expenses, property damage, and legal defense. Uninsured motorist/underinsured motorist insurance is essential, covering you in accidents caused by uninsured or underinsured drivers.

Collision insurance pays for destruction to your car from collisions or hit-and-runs, typically needed if you finance your vehicle.

Comprehensive insurance is crucial for non-collision damage, such as theft, hail, or fire. Personal injury protection (PIP) covers medical expenses, lost wages, and services for you, your passengers, and your family, typically required in “no-fault” states.

Medical payments coverage (MedPay) covers medical bills but not lost wages or services, and Gap insurance covers the gap between your vehicle’s value and your auto loan balance if it’s totaled, often required by lenders or leasing companies. Coverage may change over time, so consider adjusting your policy accordingly.

What Affects the Cost of Car Insurance?

Car insurance costs depend on several controllable and uncontrollable factors. Being aware of what’s within your control can help secure a favorable rate.

• Key factors affecting costs include location, with urban areas leading to higher rates due to increased traffic.
• Age plays a role, as those under 25 or over 55 and new drivers face higher premiums.
• Driving history impacts rates, with accidents, violations, or DUIs increasing costs.
• A good credit score results in lower rates, while poor credit affects costs, except in certain states.
• The type of vehicle can raise rates, especially for expensive cars. Adjusting the deductible affects premiums.

FAQs – Best Car Insurance Companies

Final Words

Auto insurance is a necessary and sometimes pricey commitment for the majority of U.S. citizens. Numerous firms vie for your patronage, and by comprehending the factors behind premium calculations and seeking various price estimates, you can economize while guaranteeing your car’s safeguarding from harm and loss. Incorporate customer contentment ratings into your considerations, and you’ll enhance the likelihood of satisfaction should you ever need to initiate a claim.